On Wednesday, the Federal Reserve announced that it would raise interest rates for the first time in three years, thereby ending the accommodative monetary policy that has reigned during the global COVID-19 pandemic. The Fed has raised benchmark rates by 25 basis points. Interest rate hikes force consumers to cut back on their spending, which could lead to an economic slowdown. According to economists at Goldman Sachs Group Inc. (GS), the chances of the United States entering a recession over the next year has increased to 35%.
In addition, various factors, including Russia’s invasion of Ukraine, the pandemic, and climate-related events, have increased utility bills across the country. Americans might have to suffer high utility prices through the end of the year. The utility sector’s traditional defensive nature and steady revenues might make it perform relatively well during an economic slowdown.
